Here’s More Evidence Why Apple Should Make a Cheaper iPhone

There are already arguments for Apple making a cheaper iPhone, but now there is some concrete evidence in a filing from Leap Wireless’ with the Securities and Exchange Commission.

The carrier said it is on pace to sell half as many iPhones as it committed to sell during the first year of its contract with Apple, which ends in June. Leap, which doesn’t require customers to sign contracts, charges more for the iPhone upfront than major national wireless carriers like AT&T and Verizon which subsidize the cost in exchange for two-year contracts.

The company said it was working to improve iPhone sales with more marketing and offering more financing for buyers of the device, and noted that its contract with Apple allowed it to lower the price at which it sells the iPhone to consumers.

Sure, marketing can help, but the kicker is that Leap is looking for ways to make the iPhone even cheaper than it already is.

The iPhone in of itself is not cheap, especially if the phone isn’t subsidized. Leap charges $500 for the latest model. At carriers that offer two-year contracts, the same phone sells for about $200, or $650 without a contract. The iPhone 4S is available for $100, and the iPhone 4 is free, on contract with some carriers.

Apple, for its part, is working to catch up to demand for its significantly cheaper iPhone 4 in the mean time. “We believe we can achieve a supply/demand balance on iPad Mini and on iPhone 4 during this quarter, Cook said at the time. It’s still mum on new products as of Cook’s last keynote during its shareholder meeting — as the company often is.

But momentum — and pressure — is building when it comes to demand for a cheaper iPhone. There are already many cheaper handsets offered that run Google 's Android mobile operating system.